How to open a business account online in Canada
Opening a business account online in Canada is usually straightforward, but the process depends on your business structure and having the right documents ready. Providers need to verify your identity, confirm you’re authorized to open the account, and establish who owns or controls the business.
Sole proprietors typically need fewer documents, while corporations may need details about shareholders, ownership structure, and their Business Number. Missing or mismatched information can send an application to manual review and delay approval.
This guide covers how to open a business account in Canada, what documents you’ll need, how the application works, and what to expect after you apply.
Key takeaways
- Depending on the provider, you can open a business bank account online in Canada without visiting a branch. The documents and requirements, howeveer, vary by business structure and bank.
- Compare more than just monthly fees. Look at transaction limits, interest rates, payment features, foreign currency options, and how easily the account fits into your day-to-day workflow.
- Have your documents ready before you apply. Business registration details, government-issued ID, ownership information, and other verification documents may be required.
Sole proprietor vs. corporation: how it impacts opening a business bank account online
Your legal structure changes what the provider needs to prove before your account can be opened. A sole proprietor is usually easier to verify because the business and the owner are closely tied. An incorporated business is a separate legal entity, so the provider needs proof of the corporation and proof of who can act on its behalf.
Here are some of the differences with opening, depending on the business type, and a high level overview of what is required and the potential timeline risks.
Some traditional online bank portals support online applications for sole proprietorships and single-owner corporations with one authorized signatory.
Multi-owner businesses, partnerships, unusual ownership structures and non-resident ownership can trigger extra review, like a phone call, an advisor step or a branch visit, depending on the provider.
Float Business Accounts are designed for Canadian businesses seeking a digital-first account experience. The account still requires business verification, but the flow is designed around online setup rather than an in-branch appointment.
Types of business accounts to consider
The right business account depends on how you use your money day to day. A business chequing account is designed for everyday transactions like receiving payments, paying bills, and managing payroll. A business savings account can help you earn interest on cash you don’t need immediately. Specialty accounts are designed for specific business needs or industries and may offer features tailored to how your business operates.
Your document checklist
The required documents prove identity, business existence, tax registration and ownership. These are documents you need before you begin your application to avoid unnecessary delays:
- Government-issued ID: Have a valid photo ID ready for every owner, director or authorized signatory that the provider needs to verify.
- Business registration documents: Sole proprietors using a trade name usually need to register their business name at the provincial or territorial level. Corporations should have articles of incorporation, a certificate of incorporation or a current corporate profile report.
- Business Number: If you have a Canada Revenue Agency (CRA) Business Number, keep the nine-digit BN and any program account details handy. If you don't have one yet, check whether you need to register through Business Registration Online before opening the account.
- Business address and activity: Providers will ask what the business does, where it operates and how money enters and leaves the account.
- Expected account use: Know whether you need CAD, USD or both, and whether you expect EFT, ACH, wire transfers, card spend, bill payments or employee reimbursements.
- Ownership and control details: Prepare the legal name, address, occupation and ownership percentage of anybody who directly or indirectly controls 25% or more of the business.
Providers ask for ownership details because they’re required to. It’s how they meet their FINTRAC obligations to confirm who owns and controls the business. If you are federally incorporated, there’s an extra step: you need to keep your Individuals with Significant Control (ISC) register updated at least annually and within 15 days of changes.
The online flow
Most online applications go through the same verification steps. Providers may order them differently, but the logic is similar enough that you can prepare before you choose where to apply.
1. Create the application
Enter the legal business name, operating name, address, industry, contact information and website (if available).
2. Choose the business structure
You’ll be asked whether you are a sole proprietor, incorporated business, partnership, nonprofit or another entity type.
3. Upload or enter registration details
The details asked for depend on your business structure. Sole proprietors are asked to register a trade name when applicable. Corporations are asked for articles, certificate details, Business Number and director information.
4. Verify owners and signatories
Government-issued ID and beneficial ownership details will be requested for people who own, control or can transact for the business.
5. Select the account type
Traditional providers often ask you to choose an operating account, savings account or foreign currency account. A digital-first provider like Float starts from the same compliance baseline but the application itself focuses on your account setup. You’ll confirm details around currencies, payment rails and the workflows connected to those balances.
6. Wait for review
Straightforward applications can be approved quickly. Mismatched names, expired documents, complex ownership or unusual payment activity add review time.
7. Activate and fund
Upon approval, you can start funding. Keep in mind that some traditional providers require a branch visit for identity verification or account activation.
Float Business Accounts are designed for this last step to stay online. Opening an account online takes about 15 minutes, and businesses can start earning interest once approved and funded.
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Matching your accounts to your currency workflow: CAD, USD, or both
Before you open a business bank account online, you need to know exactly what you need for your workflow. The convenience of opening an account online is lost if you’re opening an account that doesn’t meet your needs and have to start again.
The right account setup depends on whether your business receives, holds or spends money in CAD, USD or both. A local services business that invoices only in Canadian dollars won't have the same account needs as an e-commerce brand, agency or tourism business that receives USD and pays Canadian expenses later.
Three questions that decide your account structure
For a business with cross-border money movement, three questions carry the account decision:
- What currency do customers pay you in?
- What currency do you pay suppliers, payroll and taxes in?
- How long does cash sit before it needs to move?
For example, Canadian tour provider, Toonie Tours, receives a large share of revenue in USD from online travel agencies, while payroll, rent and supplier payments are often in CAD. Holding USD in Float helped the business earn $6,000+ on USD balances, save $10,000+ CAD through better FX rates and save more than 60 hours on money movement and admin work. Understanding their business needs helped them find the right accounts.
Traditional business bank account menus usually split accounts into operating, savings and foreign currency choices. That works well if you need branch services, cash handling, cheque deposits or a standard Pre-Authorized Debit (PAD) setup. If every payment happens in CAD, fee-free local payment rails and fast access matter more than currency flexibility. But if you hold USD for more than a few days, separate account types can mean extra fees or extra currency movement.
Businesses with cross-border payments can skip that by holding funds in the currency they receive, then decide when to convert.
Float Business Accounts provide account routing details for CAD and USD cash accounts. Accounts offer EFT and SWIFT wire support for CAD and ACH, Fedwire and SWIFT support for USD, with no fees for receiving payments in Float.
Choose the account around your money workflow. Forced conversion becomes a hidden cost the moment USD arrives before CAD expenses are due.
Fees, interest and lockups
Getting approved faster starts with having your documents ready, but choosing the right business account also means comparing the ongoing costs and yield once you’re up and running. An account that opens quickly but charges for ordinary activity can cost more over a year than a slower account with better economics.
What fees should I compare?
Start with the monthly account fee, then check which transactions are included. Look for charges on EFTs, ACH, wire transfers, Interac e-Transfer, cheque deposits, cash deposits, branch transactions and extra users. Some traditional accounts waive the monthly fee when you hold a minimum balance, but that can turn operating cash into idle cash that earns very little.
What interest rate matters?
Compare the rate on the full balance, the first dollar and the currency you actually hold. Some providers advertise a headline rate that only applies above a certain threshold or only to CAD balances. You need to understand what you actually earn.
What protection should I check?
Ask which regulated institution holds the funds, whether they are held in trust in your business's name or pooled on the provider's balance sheet, and whether CDIC coverage applies to your account.
For Float Business Accounts, CAD and USD funds are held in trust under your business's name within dedicated trust accounts at Scotiabank. Through our Scotiabank partnership, we offer CDIC insurance up to $100,000 CAD across combined CAD and USD cash balances. CDIC also explains how eligible deposits held in trust can be protected when disclosure rules are met.
What lockups should I avoid?
If the account pays interest only when funds are locked in a Guaranteed Investment Certificate (GIC) or term deposit, it isn't doing the same job as operating cash. Day-to-day business money needs full liquidity for customer payments, supplier bills, fund movement, payroll and tax remittances. This liquidity, however, shouldn’t mean no interest is being earned.
When to choose a bank portal vs. a digital-first application
Not every business is a good fit for an online or fintech account, though. If your operations depend heavily on physical banking infrastructure, a traditional in-branch setup might serve you better than a digital-first one.
Choosing how to open a business account comes down to what your business needs day to day. If you rely on in-person help, cash deposits, or pre-authorized debits (PADs), a traditional bank may be the better fit. If you care most about getting set up quickly, paying fewer fees, and earning interest on money that would otherwise sit idle, a digital-first account may make more sense.
Here’s a comparison between the online portals and a digital-first business account.
For many business owners, the useful decision is where each kind of money should live. Operating cash that needs to earn interest, receive USD or fund card spend can sit in a digital-first account. Cash deposits, PAD-dependent payments and branch-specific needs can stay with a traditional provider.
What to prepare before applying
The cleanest application starts before you click apply. Spend 10 minutes gathering the documents and details you need, then choose the provider that matches your list and the way your business uses cash. Future you will thank yourself for being prepared before you apply.
Here’s what you need to prepare for applications:
- Your legal structure: sole proprietor, incorporated business, partnership or nonprofit
- Your legal business name, operating name and business address
- Your government-issued ID and tneeded for other owners or signatories
- Your Business Number and CRA program accounts, if you have them
- Your articles of incorporation, trade-name registration or other business registration documents
- Your beneficial ownership details for anyone at or above the 25% control threshold
- Your currency needs: CAD, USD or both
- Your payment needs: EFT, ACH, wire transfers, PADs, cash, cheques, card spend and bill payments
- Your pricing tolerance: monthly fees, transaction fees, minimum balance rules, interest rate and lockups
Opening the account is the easy part, even with all of the steps that go into it. The harder part is doing the work to ensure that you’re opening an account that will still make sense once the first customer payment lands, the first USD balance sits overnight or the first supplier bill comes due.
How can I open a business account with Float?
Float fits best when your Canadian business wants a digital account for managing operating cash, receiving payments and earning interest without monthly account fees. Float Business Accounts are designed for Canadian businesses looking for a flexible way to manage operating cash, receive payments and earn interest all in one digital platform.
What are the benefits to being a Float account holder?
Float Business Accounts are built for businesses that need the following:
- CAD and USD account details for incoming EFT, ACH and wire transfers
- No monthly account fees, no minimum balance requirements and no lockups
- Interest earned from the first dollar
- Funds held in trust at Scotiabank with CDIC insurance up to $100,000 CAD across combined CAD and USD cash balances
- A finance platform that connects business accounts with corporate cards, bill payments, reimbursements and accounting workflows
If you're ready to open online, you can get started with Float today.